Title: The impact of market forces on the sustainability of the biotechnology industry

Authors: Damian Hine, Andrew Griffiths

Addresses: Technology and Innovation Management Centre, The University of Queensland, Australia. ' Technology and Innovation Management Centre, The University of Queensland, Australia

Abstract: This paper contains a warning for investors, executives, analysts and scientists about the sustainability of the biotechnology industry. The study upon which the paper is based examines the impact of market forces on the biotechnology industry and argues that the short-term focus of market driven policies and practices impacts on the sustainability of firms operating in the industry. The market is represented by the National Association of Securities Dealers, Automated Quotations Market (NASDAQ), considered to be one of the vehicles of the promotion of ||new economy|| companies and principles. Through the application of bibliometric data (using both refereed and non-refereed papers), matched with the long term tracking of the NASDAQ Biotechnology Index, the authors provide a clear indication that the short-term investment thinking is leading an industry that is characterised by long R&D cycles. There is an incompatibility between the shorter-term investment considerations and the long-term scientific developments the biotechnology industry is attempting to achieve. Graphs and illustrations are provided to portray the comparative data.

Keywords: biotechnology; ICT; fads; sustainability; market forces.

DOI: 10.1504/IJEIM.2004.004721

International Journal of Entrepreneurship and Innovation Management, 2004 Vol.4 No.2/3, pp.138 - 149

Published online: 07 Jul 2004 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article